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Warrants over glove-related names most active amid increasing Covid-19 cases

Last week warrants trading activity remained robust with the overall warrants turnover surging 26.1% week-on-week (w-o-w) to RM1.3bil, mainly contributed by warrants over the Malaysian shares. With Covid-19 cases worldwide showing no signs of slowing down, coupled with surging cases reported daily in Malaysia recently, the rubber glove sector continues to be in the spotlight as demand for gloves is expected to remain elevated.
macquarie structured warrants 20200914

Last week warrants trading activity remained robust with the overall warrants turnover surging 26.1% week-on-week (w-o-w) to RM1.3bil, mainly contributed by warrants over the Malaysian shares. With Covid-19 cases worldwide showing no signs of slowing down, coupled with surging cases reported daily in Malaysia recently, the rubber glove sector continues to be in the spotlight as demand for gloves is expected to remain elevated. 

Property developer Mah Sing Group, which recently announced its proposal on a glove business venture, saw its share price jump 31.2% to close at its year-high of RM1.24 last Monday (19 Oct). The share price however was seen to be volatile as it fell a total 9.1% over two days before rebounding 0.9% on Thursday and closed in the red again on Friday, plunging 8.8% to RM1.04. With the recent strong bullish trend in Mah Sing’s share price, it was no surprise that three call warrants over this name made it to the top 5 most active warrants list last week. MAHSING-C24 remained the top traded warrant among all warrants over this name as its trading volume grew by more than 21% to 346.0mil units, followed by MAHSING-C23 and MAHSING-C27 with 211.6mil units and 141.3mil units traded, respectively. 

On the other hand, it was reported that Top Glove Corporation has been making improvements in its efforts to reverse an American import ban placed on two of its subsidiaries in July (The Edge Markets, 24 Oct). Top Glove has submitted necessary information to the U.S. Customs and Border Protection (CBP) and is following up with them closely. In the meantime, all its gloves will be routed to other countries across the globe to cater to the urgent demand (The Edge Markets, 18 Oct). 

Top Glove’s share price had a relatively weak momentum last week despite rising 2.8% to RM9.60 on Monday (19 Oct). The share price then started trading below the RM9.00 mark since Wednesday (21 Oct); Top Glove fell 6.9% w-o-w. TOPGLOV-C90 and TOPGLOV-C91 were among the most active warrants with investors trading 54.4mil units and 50.7mil units, respectively. Both call warrants tracked the movement of the mother share price closely, falling 16.2% w-o-w and 17.2% w-o-w, respectively.  

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise price / levelExpiry date
SUPERMX-C1I348.6Kenanga14.0026 Jul 2021
MAHSING-C24346.0Ambank0.807 May 2021
MAHSING-C23211.6RHB0.7027 Apr 2021
MAHSING-C27141.3Maybank0.7829 Oct 2021
HARTA-C54100.6CIMB20.026 Feb 2021

If you have any questions or need further assistance, please do not hesitate to contact us via our hotline at 03-2059 8840 or email us at info@malaysiawarrants.com.my

To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my

Provided for Malaysian residents information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice.

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